Pension Plan Merger Update

CANADA – Worker Benefit Services reports that on September 21, 2023, the Alberta Pension Regulator approved the transfer of Defined Benefit (DB) pension assets and liabilities held in the LCC Pension Plan to the CAAT pension plan (“Plan Merger”).

The transfer of DB assets and liabilities was completed on November 8, 2023, and from that date CAAT has assumed responsibility for the payment of pensions that were earned under the LCC pension plan prior to the effective date of the merger, which was April 1, 2023. Since April 1, Active members have been earning their future pension benefits under the CAAT Db plus pension plan.

The next step in the process of winding up the LCC pension plan will be the dispersal of member assets held in the defined contribution (DC) component of the LCC pension plan. Our DC plan custodian, Sun-Life Financial, is currently distributing option packages to members. Each member with a DC account will have a choice from several options on how they would like to handle their DC account balance, including:

• Using their DC account balance to purchase additional pension under CAAT’s DB plus plan for eligible periods of employment (Active members only).

• Using their DC account balance to purchase an annuity from an insurance company.

• Transferring the DC account balance into other registered retirement vehicles such as a locked in retirement account (LIRA) or life income fund (LIF) with another financial institution.

• Transferring their DC account balance to Sun Life’s group choices plan where they can continue to invest their funds.

The dispersal of DC account balances from the LCC pension plan is expected to be completed before the end of the calendar year.

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